Economists and Investors Are Eyeing These Vibrant 18-Hour Cities
Economists and real estate investors frequently discuss 18-hour cities, which are mid-sized cities known for their attractive amenities, higher-than-average population growth, and lower cost of living and operating businesses compared to major urban hubs. These cities typically boast a population under one million, effectively ranking them as second-tier cities.
Across the U.S., 18-hour cities are being recognized as viable locations for investment and living, offering alternatives to the Big Six markets: Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C.
Discover the Appeal of 18-Hour Cities
Key Features
- Vibrant Metro Areas: 18-hour cities are becoming highly attractive to new residents, entrepreneurs, and investors.
- Affordable Living: These cities offer lower living costs along with excellent infrastructure and amenities.
- Business Opportunities: Many are emerging as prime locations for starting or relocating a business or investing in real estate.
Comparable Advantages to Bigger Cities
Though their services and amenities might not operate around the clock as in major metros, 18-hour cities provide comparable benefits. These include trustworthy public transportation, modern infrastructure, and robust economies. Additionally, housing prices remain moderate, offering a balanced market for residents and investors alike.
The Alluring Advantages of 18-Hour Cities
18-hour cities stand out as affordable and attractive alternatives for launching new businesses, relocating existing ones, or investing in real estate. One significant advantage is lower capital rate compression, implying stable property values rather than dramatic spikes. These cities often enjoy low real estate vacancy rates, favorable supply concentrations, rental growth, and strong absorption trends – signs of potent, long-term investment potential.
Cultural Appeal
Aside from economic numbers, 18-hour cities exhibit a distinctive culture. For example:
- Austin: Known as the live music capital of the world.
- Denver and the Research Triangle: Celebrate an active outdoor lifestyle.
- Portland: Famous for its quirky and unique character, cherished by its community.
While such cities might pose a slightly greater risk due to their evolving status compared to established primary markets, their thriving economy and cultural uniqueness balance this out.
Examples of Prosperous 18-Hour Cities in the U.S.
CrowdStreet, a platform for crowd-sourced real estate investments, highlights cities like Austin, Denver, and Nashville as leading 18-hour cities. In 2020, Charleston, South Carolina, emerged as another rising star in this category.
Realtor.com listed its top metropolitan areas for 2020 and beyond, which prominently featured 18-hour cities. Their choices included:
- Boise, Idaho
- McAllen-Edinburg-Mission, Texas
- Tucson, Arizona
- Chattanooga, Tennessee
- Columbia, South Carolina
According to the National Real Estate Investor website, Charleston, Kansas City, and Columbus, Ohio, have shown remarkable growth in job opportunities.
Catering to Millennials
These vibrant cities are becoming popular among millennials who seek to build or advance their careers. 18-hour cities provide ample recreation and entertainment, extending beyond typical second-tier offerings, blending vibrant day and nightlife seamlessly.
Businesses are favoring 18-hour cities due to the reduced cost of operations, which also draws a large influx of job seekers and entrepreneurs eager to capitalize on these expanding opportunities.
Related Terms: real estate investment, population growth, cost of living, urban development, second-tier cities.
